Thursday, January 22, 2015

Internationalization of the renminbi

From time to time, I have reported on the growing use of the Chinese currency, the renminbi, in international trade. See here for my most recent update. The latest 3rd party update came from a recent issue of Wall Street Journal.

According to the WSJ report, nearly 25% of all the transactions across China's borders in 2014 were settled with the yuan. Fifty countries used the yuan for at least 10% of their trade with China. It is now the seventh most used currency according to Swift international payments.

According to China's central bank, the amount of renminbi used for international payments for 2014 was equivalent in value to $1.6 trillion in dollars.

A later Financial Times article gave an overall view of all the world currencies used in international transfers. The Chinese renminbi has now risen to 5th overall in volume of use.